[IP] Microsoft Patent Envisions Free Hardware, Software

[David Farber <dave@farber.net>]

Begin forwarded message:

From: TClaburn@cmp.com
Date: July 28, 2006 1:35:23 PM EDT
To: dave@farber.net
Subject: for IP if you wish...

Microsoft Patent Envisions Free Hardware, Software

http://informationweek.com/news/showArticle.jhtml?articleID=191502430

As Microsoft increases its spending to do battle with Google for  
leadership in
online advertising and hosted applications, a Microsoft patent  
application
published on Thursday shows the company contemplating free computers and
software for its customers.


In the deliberately broad language patent lawyers use to leave their  
clients'
options open, Microsoft's latest patent application, "Profitable free  
computing
resources leveraging the advertising model," describes several possible
applications for a targeted advertising system under development.


The patent application details the possibility of free computers for  
Microsoft's
online customers. It suggests "a service provider such as a telephone  
company,
an Internet service provider, or a leasing company may provide  
computer systems
or components to users at a reduced charge or for free in exchange  
for targeted
advertising delivery."


In such a scenario, Microsoft would presumably work with hardware and  
ISP
partners, subsidizing the cost of hardware and service with online  
advertising
revenue.


A Microsoft spokesman declined to comment further on the patent  
application.


But at a meeting of financial analysts at Microsoft's Redmond,  
Washington
headquarters on Thursday, Kevin Johnson, co-president of Microsoft's  
platforms
and services division, demonstrated the company's commitment to  
advertising
technology as a source of revenue. He showed off Microsoft adCenter  
serving ads
to Microsoft's Xbox Live online service and discussed Microsoft's  
acquisition of
Massive, a developer of technology for delivering ads inside video  
games.
Johnson projected that Microsoft's online services would see revenue  
growth
ranging from 7% to 11% in FY07, rising to $2.5B to $2.6B from $2.3B  
in FY06.


In exchange for free computing hardware and service, the patent  
application
details how users would have to pay in information. "Resources on the  
computer
system itself, such as the operating system, identify user  
characteristics and
interests based on information stored on the computer," the patent  
application
explains. "A user profile may be developed using information such as  
music
preference, language, and game usage."


The patent application proposes sharing user information with an  
advertising
provider, either directly or through a service provider, to allow for  
targeted
ad delivery, both online and offline.


...

Thomas Claburn, Editor-at-Large
InformationWeek, CMP Media, Inc.
600 Harrison St., 6th Floor
San Francisco, CA 94107
tclaburn@cmp.com
415.947.6820

http://www.informationweek.com
http://www.thomasclaburn.com



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